An employee worked for San Diego Gas & Electric Company (SDG&E) before being terminated. The employee alleged that SD&E discriminated against her based on disability, failed to reasonably accommodate her, and retaliated against her for exercising her rights. She sued SD&E under California’s Fair Employment and Housing Act (FEHA), the California Family Rights Act (CFRA), and for wrongful termination.
SDG&E moved to compel arbitration based on an employment agreement the employee signed when she was hired in 2005. The employment agreement required arbitration of disputes concerning any aspect of the agreement or conduct allegedly violating the agreement. The California Superior Court granted SDG&E’s motion, reasoning that the employee’s claims arose from her employment and termination.
The employee petitioned the California Court of Appeal, arguing that her claims fell outside the scope of the arbitration provision. The Court granted the employee’s petition and directed the lower court to deny SDG&E’s motion to compel arbitration. The Court determined that the arbitration clause was limited to disputes concerning or alleging violations of the employment agreement. Since the employee’s FEHA, and CFRA claims arose from independent statutory and public-policy grounds, rather than from violations of her employment agreement, she had not agreed to arbitrate those claims.
Morales v. Superior Court (2026) 122 Cal.App.5th 239.